The Deliberate Innovation Strategy


The strategic choice view argues that if an incumbent is not the first to introduce an innovation, it may not be because it has no incentive to invest, its competence has been destroyed, it has not recognized the potential of the innovation, it does not have the complementary assets, it did not use the right adoption mechanism, or it is an environment that is not conducive to innovation. It may be because of the firm’s innovation strategy—its goals, timing, actions, and resource allocation in using new knowledge to offer new products or services. By making the right choices early, a firm can build the right competences and complementary assets, or even shape the kind of environment in which it is going to operate.

There are several innovation strategies: offensive, defensive, imitative, dependent, traditional, and optimistic. A firm with an offensive strategy is the first to introduce new products. If the strategy is to be the first to innovate, it will invest in the innovation and build the capabilities to do so.  In a defensive innovation strategy, a firm waits for a competitor with an offensive strategy to introduce a product first and resolve some of the uncertainties confronting the innovation. The defensive firm then introduces its own product, correcting any mistakes that pioneers may have made.

Firms pursuing a defensive strategy normally have very strong complementary assets—capabilities such as marketing, manufacturing, distribution channels, and reputation which allow a firm to commercialize an invention—and when they decide to move, they do so very quickly. They usually have a strong R&D since it takes knowledge to absorb knowledge. The product is not an imitation of the pioneer’s version but rather a differentiated product, often with better features and lower cost. The firm, in effect, catches up with or leapfrogs the pioneer. Thus not being the first to introduce an innovation may not be a sign of a lack of incentive to invest, competence destruction, absence of appropriate complementary assets, inappropriate adoption mechanism, or being in the wrong environment. It may be because the firm in question has a defensive strategy.

While a firm with a defensive strategy would like to differentiate its products, one with an imitative strategy would like to produce a clone of the pioneer’s product. It has very little attention of catching up with or leapfrogging the pioneer. It usually has such low-cost capabilities as lower labor costs, access to raw materials, and strong manufacturing. In the dependent strategy the firm accepts a subordinate role to a stronger firm. It imitates product changes only when requested by the customer or superior. Many large Japanese firms have these satellite firms. The traditional strategy makes very few changes to products, only striving to offer the lowest cost possible. In the opportunistic strategy the firm looks for some unique needs of a market segment that are not being met—it looks for a niche market. The point in all these other strategies is that a firm’s failure to introduce a product first can be due to its deliberate strategy.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Venture Capital


In starting a business you can use the help of family, friends, and children. You can use the garage and the basement of quarters. You can borrow furniture and equipment. But after all the resources of family and friends have been obtained, there is still the need for some hard cold cash. It takes a little money to pay for things like raw materials, telephone, postage, letterhead stationery, and possibly some salaries and wages. This start-up money is sometimes referred to as seed money. It may be the most venturesome kind of venture capital.

To improve the probability of success in starting a new business, it takes the right kind of person with the right kind of business concept. More than that, the person should be a particular point along the career path and the business concept should be timely in the context of perceived consumer values as well as current technology. Even with the right person at the right time, and the right business concept at the right time, there is still the need for venture capital to give the new business a chance to win in the marketplace competition.

Venture capital is liquid assets invested in an unproven business. Money placed with a proven business enterprise for its prudent use can be thought of as invested capital. Money placed with any other business enterprise is at risk to a greater or lesser degree and can be thought of as venture capital. There are few enough proven business, and it is easier to identify and describe one of them than it is to try and describe one of the many, many unproven businesses.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Lectures, Line of Sight

Inspect Products at the Right Time


Inspections used to be left until the later stages of the process – often just before the finished products were delivered to customers. As there was more chance of a product being faulty by the end of the process, all defects could be found in one big, final inspection. But the longer a unit is in a process, the more time and money is spent on it – so it makes sense to find faults as early as possible before any more money is wasted by working on a defective unit. It is better for a baker to find bad eggs when they arrive at the bakery, rather than use the eggs and then scrap the finished cakes.

Your first quality control inspections should come at the beginning of the process, testing materials as they arrive from suppliers – and there is a strong case for inspections within suppliers’ own operations. Then you should have inspections all the way through the process to the completion of the final product and its delivery to customers. Some particularly important places for insperctions are:

  • On raw materials when they arrive;
  • At regular intervals during the process;
  • Before high-cost operations;
  • Before irreversible operations, like firing pottery;
  • Before operations that might hide defects, like painting;
  • When production is complete;
  • Before shipping to customers.

This may seem like a lot of inspections, but remember that most of them are done by people working on the process. Quality at source means that the products are not taken away for testing in some remote laboratory, but are checked at each step before being passed on the next step.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Assessing Competitors’ Areas of Strength


  1. Excellence in product design and/or performance (engineering ingenuity)
  2. Low-cost, high-efficiency operating skill in manufacturing and/or in distribution
  3. Leadership in product innovation
  4. Efficiency in customer service
  5. Personal relationships with customers
  6. Efficiency in transportation and logistics
  7. Efficiencies in sales promotion
  8. Merchandising efficiency—high turnover of inventories and/or of capital
  9. Skillful trading in volatile price movement commodities
  10. Ability to influence legislation
  11. Highly efficient, low-cost facilities
  12. Ownership or control of low-cost or service raw materials
  13. Control of intermediate distribution or processing units
  14. Massive availability of capital
  15. Widespread customer acceptance of company brand name (reputation)
  16. Product availability, convenience
  17. Customer loyalty
  18. Dominant market share position
  19. Effectiveness of advertising
  20. Quality salesforce

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

The March of Globalization


Globalization is the spread of economic innovations around the world and the political and cultural adjustments that accompany this difusion. Globalization encourages international integration, which has increased substantially during the last generation. In globalized markets and industries, financial capital might be obtained in one national market and used to buy raw materials in another one. Manufacturing equipment bought from a third national market can be used to produce products that are sold in yet a fourth market. Thus globalization increases the range of opportunities for firms competing in the 21st century competitive landscape.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Nature of Business Market


Like final consumers, an organization purchases products to fill needs. However, its primary need—meeting the demands of its own customers—is similar from organization to organization. A manufacturer buys raw materials to create the company’s product, while a wholesaler or retailer buys products to resell. Companies also buy services from other businesses. Institutional purchases such as government agencies and nonprofit organizations buy things to meet the needs of their constituents.

 Business buying decisions, while handled by individuals, occur in the context of formal organizations. Environmental, organizational, and interpersonal factors are among the many influences in B2B markets. Budget, cost, and profit considerations all play parts in business buying decisions. In addition, the organizational buying process typically involves complex interactions among many people. An organization’s goals must also be considered in the organizational buying process.

 The B2B market is diverse. Transactions can range from orders as small as a box of paper clips or copy machine toner for a home-based business to deals as large as thousands of parts for an automobile manufacturer or massive turbine generators for an electric power plant. Businesses are also big purchasers of services, such as telecommunications, computer consulting, and transportation services. Four major categories define the business market: 1) the commercial market, 2) trade industries, 3) government organizations, and 4) institutions.

 My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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